To think we need to tax the robots.

[WhenSheWasBad]

The country clearly needs to increase the amount of tax taken. There seem to be more and more robots around (eg self service checkouts).

These machines often replace a human who’s wages would need to be taxed, or at least NI would be paid. AIBU to think we need to tax some of these robots.

Maybe start with the customer based ones - self service tills, driverless cars, Amazon pick up points etc.

In theory if companies paid their corporation tax that would be the equivalent. Why? Because more robots equals fewer expenses and higher profits upon which CT is collected. Fixing CT and stopping companies hiding profits overseas would be a better start

Taxing technology on its output directly is a bit trickier otherwise there would be a case for extra taxes on your calculator, phone or even a pen and paper

Taxing technology on its output directly is a bit trickier otherwise there would be a case for extra taxes on your calculator, phone or even a pen and paper

But a pen doesn’t take away a job.

I’m thinking you tax things that take a job away. So a normal vacuum cleaner would not be taxed extra. But a robo vacuum would be because that could potentially do a persons job.

i bought a robot vacuum cleaner, it didn’t replace a human cleaner and I was never going to get a human cleaner. But I’d be happy to pay higher tax on a robo vacuum

I like your thinking but it's riven with complexity. What @BubblyBarbara said in her first comment about Corporation Tax is the way to go.

You cannot tax a machine. It does not take a salary like a human who is subjected to PAYE. Even if you could how do you differentiate between a self-checkout till in Hull and a virtual assistance in San Diego? The transaction can be taxed and that is called VAT.

I do get your point. This race to automation and AI will cause collateral damage. BIG plc will lose sales because a thousand people can no longer afford to be their customer, but they will simply replace that with new markets and increased technology. Humans are remarkably resilient. The transformation from agricultural to industry based society was dramatic and sudden in the 19th century. Writers at that time predicted society would collapse when farm-workers lost their jobs as they made a big proportion of the workforce. That did not happen, they retrained and went on to make, build and do other things. This thing called 'Growth' enables that. When 'Growth' stops everything starts to come undone, including taxes.

The real challenge is not competing with AI, it is managing our lives and society as a whole when 'Growth' stops, whether that is due to a pandemic, an asteroid or climate change.

Why? Because more robots equals fewer expenses and higher profits upon which CT is collected.

Not sure if you are aware but companies get a net tax rebate for investing in robotic research and development. They become negative taxpayers.